Travel Industry

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Can anyone tell me why the travel industry charge you for using a credit card when nobody else does.
Thanks
Stu

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  • [Deleted User]
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    They do it to cover the costs of processing, same as the car industry, the DVLA, smaller retailers...
  • InsideInsurance
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    scubastu1 wrote: »
    Can anyone tell me why the travel industry charge you for using a credit card when nobody else does.
    Thanks
    Stu

    They typically have a disproportionately high transaction fee compared to the volume of turnover they have. A much higher risk of chargebacks etc against deposits, S75 claims etc and given its a high transaction value business it is unusual for payments by cash which negates the possible insurance savings

    Ultimately all retailers have to make a decision, it costs money to accept cards so do you raise your prices for everyone and then allow people to chose their own payment method or do you keep your prices lower and just charge those using cards the extra.

    If you compare things to the likes of major supermarket they are in a very different. They're probably paying less than 0.5% on credit card fees and by accepting cards over cash they are saving on the risks of staff giving the wrong change, the cost of having to do cashing up, the insurance required for having that amount of cash on site etc
  • floopnoodle
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    As above, typical of most high value/low margin products or services.
  • chattychappy
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    If you compare things to the likes of major supermarket they are in a very different. They're probably paying less than 0.5% on credit card fees and by accepting cards over cash they are saving on the risks of staff giving the wrong change, the cost of having to do cashing up, the insurance required for having that amount of cash on site etc

    Yes. Of course for many years supermarkets didn't accept CCs. Their margins were relatively low in those days - with people spending a greater proportion of their money on low margin commodity products. By accepting CCs people are not limited by the amount of cash they have on them (or in a current account) so they are more likely to buy the extra booze or whatever.
  • redpete
    redpete Posts: 4,695 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
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    scubastu1 wrote: »
    Can anyone tell me why the travel industry charge you for using a credit card when nobody else does.

    Cinemas and theatres also charge a fee.
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • reclusive46
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    redpete wrote: »
    Cinemas and theatres also charge a fee.

    Only online though. And its not just on credit cards, debit cards as well.
  • DrRoebuck
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    It's not just travel companies. Anecdotally I think it's increasing. My local Chinese does, a lot of my professional societies/associations do, my garage does, my language school does etc.

    As long as they don't charge for debit card use, I'm fine with it (especially for small retailers). But for cinema chains and Easyjet to charge for credit card use is a bit irritating.
  • reclusive46
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    DrRoebuck wrote: »
    It's not just travel companies. Anecdotally I think it's increasing. My local Chinese does, a lot of my professional societies/associations do, my garage does, my language school does etc.

    As long as they don't charge for debit card use, I'm fine with it (especially for small retailers). But for cinema chains and Easyjet to charge for credit card use is a bit irritating.

    Atleast some retailers are actually looking at the fees now though, local conveiance store has a minimum £4 for debit cards but you can pay by credit card for any amount as they lose no more profit margin as its a flat percentage.
  • Atidi
    Atidi Posts: 943 Forumite
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    scubastu1 wrote: »
    Can anyone tell me why the travel industry charge you for using a credit card when nobody else does.
    Thanks
    Stu
    Really?

    Can you tell me how people can reclaim the charges often applied by their insurance company for paying by credit card?

    And from their council who often apply charges for paying the council tax by credit card.

    And from the car dealers who almost invariably charge people who buy a car from them using their credit card.

    :cool:
  • DrRoebuck
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    You mean I'm supposed to carry CASH? Like a COMMONER?!?!

    I feel faint.
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